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tv   BBC Business Live  BBC News  May 8, 2018 8:30am-9:00am BST

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this is business live from bbc news, with vishala sri—pathma and sally bundock. turbulent times for air france — shares are extremely volatile as the crisis deepens at europe's second biggest airline. live from london, that's our top story on tuesday 8th may. staff reject the latest wage offer and the boss jean—marc janaillac is stepping down. we find out why this saga goes beyond air france and could have ramifications for the entire french economy. also in the programme... asian ambitions — japanese drug giant ta keda prescribes a 62.5 billion takeover for irish rival shire pharmaceuticals — could it be the largest ever foreign takeover by a japanese firm? and markets in europe are mixed with all eyes on the trump administration as it prepares
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to announce its stance on the iran nuclear deal. and the business of healing creams. it's a multi—million dollar industry, we meet the lady that's making money from sensitive skin. plus, a new report suggests that 25—year—olds in the uk should be given £10,000 to spend on a house or a business in a bid to tackle the wealth gap between young and old. so we're asking, should we be taxing the old to give to the young? let us know on twitter, just use the hashtag #bbcbizlive. hello and welcome to business live. 0h, oh, to be 25 again! send us your comments about that story. we will unpack what it means and what the ideas are. the future of air france looks uncertain after the company lost nearly a tenth off its stock market value on monday.
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the shares have gone up by 7.5% today. it is really volatile love snow. today. it is really volatile love show. “— today. it is really volatile love snow. —— it is really volatile right now. markets worried by comments from france's economy minister, bruno le mair, over the weekend, who said the airline could disappear unless a pay dispute was resolved. it is not too big to fail. shares have now recovered, up just over 2% this morning. the french government owns 14.3% of the air france—klm parent group, but has repeatedly said it won't bailout the troubled airline. the national carrier has already been hit by m days of strikes and staff have rejected the airline's latest offer of a 7% pay rise spread out over four years. workers have asked for an annual salary increase of 5.1%. they are holding out for what they want. last friday, the airline's boss, jean—marc janaillac, resigned after staff rejected
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the firm's final pay offer. so what now? joining us now is daniel roeska, senior research analyst at sanford c bernstein. daniel, thank you forjoining us. lots to get through. currently there isa lots to get through. currently there is a stand—off between the government and the airline. who will blink first? the stand-off is between the unions and management, of course. from this point on it is up of course. from this point on it is up to the unions. will they decide to give it a rest, have new management come in without new strikes going on, or will they keep on pressing? at this point in time there will be no deal until the new management is here, it is a dire situation the outline is in. these strikes are one issue for the outline, the share price has roughly halved since the beginning of the year, halved since the beginning of the yea r, sally halved since the beginning of the year, sally was talking about some recovery today. its problems have
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been ongoing, they have had to compete with low—cost airlines and the middle east and carriers with deeper pockets? a lot of the reaction this morning, iam not a lot of the reaction this morning, i am not sure there is a fundamental movement evolved yet. air france klm was one of the first airline groups to merge in europe. they did a good job. but arguably others like iag and job. but arguably others like iag a nd luftha nsa job. but arguably others like iag and lufthansa have done better. air france and klm never integrated, there is mistrust. air france specifically has not restructured as much as it has to. and the chief executive resigned and the decision for the new leader will set the tone of how the talks carry on? that is what i would say. the chairman has the choice, a typical air france choice of bringing somebody new in every two years, or deciding for restructuring candidates, arguably to deal with the situation effectively that is
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fairto the situation effectively that is fair to the plough use you would need a leader to be there for almost a decade to solve this issue. —— deal with the situation effectively ina way deal with the situation effectively in a way that is fair to the employees. the likes of british airways and lufthansa have adapted to this new markets, why have air france not been able to do the same? iag, ba and lufthansa went through a series of bad strikes, at the time everybody said this is the wrong strategy, you need to get out of it, you need a consistent strategy on how to deal with the reclamation of that old legacy carrier. i would say simply that air france still has a lot of profitable parts, the klm group out of amsterdam, the maintenance group, the catering group, part of which they sold last year, so they still have a lot of potential to fund ongoing operations that air france without addressing the core of the issue. we will have to leave that there. thank you, daniel. let's take a look at some of the other stories making the news... us cable operator comcast
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is reportedly raising funds for all—cash offer for the media assets of twenty—first century fox. fox has already agreed to sell that part of the business to disney for $52 billion, in an all—stock deal agreed late last year. walmart and google's parent alphabet are expected to announce they'll buy a combined 75% stake in india's biggest e—commerce company flipkart for 15 billion dollars. the deal would be the biggest foreign direct investment in indian history. china's exports rose nearly 13% in april, while imports grew by over 2i%. the numbers suggest the world's second biggest economy remains relatively resilient despite a on—going trade dispute with the united states. as ever, we turn to the business live page, the bbc website whether
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live page is constantly updating with the latest information. there is some detail on the shire takeda deal, takeda finally putting in a bedford shire pharmaceuticals. it appears to be the cash carrot that shire has bitten, it has been a while in the making. it is talking about asda and sainsbury‘s, the tie—up between the two. walmart doing a deal with sainsbury is, it was announced this time last week. the competition and markets authority could scrutinise the proposed merger. speaking to the today programme on radio 4 about some of the regulatory hurdles that could be a problem for that. japanese pharmaceutical firm ta keda has reached a $62 billion takeover agreement with its rival shire. that is the story that broke one and a half hours ago. the deal is the biggest overseas acquisition ever by a japanese company, and the largest deal in the sector since 2000.
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first, katie silver is in singapore. katie, thanks for joining katie, thanks forjoining us. it is a huge deal and it has been in the making for some time? you're right. it has taken five offers from the japanese company ta keda it has taken five offers from the japanese company takeda in about as many weeks. during this time shares have taken a hit, investors were worried they could not afford the deal. today was the deadline that was set when the last offer was made in late april, irish company shire has accepted. what is the final deal? they have accepted $30.33 cash for each share and about an eighth ofa for each share and about an eighth of a share of each shareholder, it isa of a share of each shareholder, it is a $62.5 billion agreement and it is a $62.5 billion agreement and it is the largest takeover by a japanese firm. they will own about 55% of the combined group and will be listed injapan and the us. but the deal will until the middle of
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next year, you have a year to wait before it will be sorted. thank you forjoining us from singapore, katie. this is asia, japan and hong kong. that is the us behind me, the night before. many people considering what the trump administration will say later today. president donald trump has said they will make an announcement at 2pm local time as to their intentions when it comes to their intentions when it comes to the raw nuclear deal. it is widely expected the us will announce it is pulling out of that deal, or wants to try to change it. let's look at european markets, it has impacted on markets in the sense that the dollar has got weaker, the price of oil has been volatile, down a bit today but above $75 a barrel for some time. this is how things are going in europe, we will talk about some of the big movers in a moment.
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and joe miller has the details about what's ahead on wall street today. 0n on tuesday the walt disney company is expected to report a stonking rise in second—quarter revenue, driven in part by black panther. the theme parks and results are also expected to contribute to the good fortu nes expected to contribute to the good fortunes of the mickey mouse creator. but investors will also be looking to any updates on the disney froch steel. disney's $52 billion offer to buy parts of the rupert murdoch empire were put in jeopardy recently by us media rival comcast, which started a bidding war for the lucrative european media company sky, a potential assets of fox that the disney ceo has been trying to acquire. valiant pharmaceuticals has reported a drop in first—quarter profit as it combats competition for several major projects. the firm has attracted notoriety in recent yea rs the firm has attracted notoriety in recent years for inflating the
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prices of its diabetes medication. that was joe miller that wasjoe miller in new york. joining us is james bevan from clla investment management. good morning, james. we have lots to talk about, lots of things going on in the market. president trump about to tell a semi—few hours how he feels about the raw nuclear deal. how is the oil price doing? —— president trump about to tell is in the next few hours how he feels about the iran nuclear deal. there are about the iran nuclear deal. there a re lots of about the iran nuclear deal. there are lots of supply issues, some countries want to issue more oil, we have concerns about iran and venezuela. and to throw into the mix all of the takeovers, mergers and acquisitions. we have takeda paying £49 per share for shire pharmaceuticals. the comcast news, it is perhaps trying to raise enough to make a bedford 2ist
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it is perhaps trying to raise enough to make a bedford 21st century fox entertainment division. so much happening. —— to make a bid for. global growth is perhaps slowing and companies are thinking we had to continue reporting that, revenue growth will be harder to come by. how about an acquisition or murder —— merger to build better returns? many of these companies worry about organic growth, but some things are still cheap. comcast is just organic growth, but some things are still cheap. comcast isjust going for it? in a sense, you're forced into a position to act in an aggressive manner because everybody around you is doing same. 0k. around you is doing same. ok. we will have you for the rest of the programme and speak to you later, james. still to come, baby toiletries — from moisturisers to wipes, its a multi—billion dollar market. we speak to one company boss who is targeting tender tots,
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making creams for condition like eczema and psoriasis, based on largely natural ingredients. a report by the resolution foundation — a think tank here in the uk — into inter—generational living has been launched today. it looks at how to narrow the financial divide which exists between different generations. 0ur economics editor kamal ahmed met with the chair of the foundation, lord willetts, and asked him what social issues the report had found? we've got a very serious problem of ensuring afair we've got a very serious problem of ensuring a fair deal across the generations. 0lder ensuring a fair deal across the generations. older people are worried about properly funded health care, people in middle age still have not been able to buy their own home, and for younger people their pay is no better than ten or 15 yea rs pay is no better than ten or 15 years ago. so all the different generations in the uk face different pressures , generations in the uk face different pressures, but we can tackle them and do something about it.
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this has been a failure of politics? i think this has been a failure of politics? ithink so, this has been a failure of politics? i think so, and i think it reflects that, individually we are all very aware that, in families we do our best but we have not focused on what government can do to make things better for all the different generations that make up society. a tax rise for pensioners, surely no political party will push that through, it is too toxic? there is no avoiding the pressures for more spending on health and social care, the question is how we meet them. extra borrowing is unfair on the younger generation, extra taxes on the working population, when especially younger workers have not seen any increase especially younger workers have not seen any increase in pay, would be very unfair. what are the risks if nothing happens, if this report stays on a shelf gathering dust, if the policymakers do not ask whether —— do not act? the policymakers do not ask whether -- do not act? we need a better way of funding the health and social ca re of funding the health and social care that everybody wants to see, thatis care that everybody wants to see, that is a high priority. secondly,
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there are over 1.5 million families bringing up their kids in a private rented sector with no security or ten—year, facing a prospect of having to take them out of school and move them somewhere else, that isa and move them somewhere else, that is a real pressure on families. and younger people, their pay progression has basically halted, they don't see the prospect of earning the same amount that their pa rents earning the same amount that their parents did and they will become increasingly angry. these are real problems that need to be tackled, but we are optimists, we think they can be and we think all the different generations wants to tackle them, because if we can, there is something in it for every age group. better health care, better access to housing, better training for young people. you're watching business live — our top story — turbulent times for air france — shares are on a roller coaster ride as the crisis deepens at europe's second biggest airline. it's a speculator‘s dream.
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a quick look at how markets are faring... a mixed day. lots of other stories, the nuclear iran deal on the mind of investors, a busy time. let's have a look at the business of children and care. raising kids costs a fortune — in the uk the average cost of raising just one child is an eye—watering £311,000. so where does all that money go? well as any parent will tell you, nappies, wipes and other products can feel like a never ending, but necessary, cost. in fact, the global baby toiletries market is expected to be worth a staggering $87.3 billion by 2022. iama i am a parent and i am almost speechless to, it's costing me a heck of a lot of money. 0ne company that wants its own small slice of that pie is childs farm. they make toiletries,
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specifically for children with ingredients that are more than 98% naturally derived. its products are now stocked by the likes of boots, superdrug and sold all over the world. last year the firm reported revenues of $16.3 million. we have got the company's founder with us, joanna jensen with others in this duty owed to talk us through how this began. good to have you with us. like very much for having me. you have, armed with products. you started this in 2014, is that right? i came up with the idea in 2010 really because of the age of my youngest who had very bad skin and spend a couple of years working on it and spend a couple of years working on itandi spend a couple of years working on it and i have no retail experience whatsoever, i thought you went into a store and you said i have got these wonderful products, when do you want them ? these wonderful products, when do you want them? it took a little bit longer than i thought and, needed
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with a listing in both boots and waitrose and 2014 and it has skyrocketed. you didn't started in 2014, it was in the shops then. four yea rs later 2014, it was in the shops then. four years later how is it going? phenomenally well. we just had a quick capture of some data last week and we are now selling 150,000 bottles a week and it's driven by our hero product which is our baby moisturiser, one of these cells every 14 seconds in the uk which is astounding. that is astounding. we hear a lot about companies, amazon proofing, amazon comes in, becomes a big player in the market and eve ryo ne big player in the market and everyone has two slash their prices. of everyone has two slash their prices. 0f toiletries and make up its having less of an effect? i think its quality and it's a bit like the whole food revolution, parents are much more savvy about what they put
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on their children's skin, it's incredibly important with the development of atopic eczema, in the uk it's one in five under fives that have it, in australia it's three in ten, we are looking at a massive growth in irritating and sensitive skin conditions, parents are taking things a lot more seriously and possibly spending a bit more but doing a lot more research. do we have to pay quite a premium for this, you find the children's products, we were outlining, it's really expensive and for many right now they have not got the spare cash to pay a bit more for a better moisturiser. i always took the view for what i be prepared to spend on myself and reposition ourselves as top of mass, we have done an awful lot of research, we do clinical safety assessments on all our products and we do user trials on newborn babies and children with medically diagnosed eczema so we ta ke co mfo rt
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medically diagnosed eczema so we take comfort that these at that purpose, that for children's skin and we can that reassurance to pa rents. and we can that reassurance to parents. a lot of adult use these products because they find they are great for their skin except but i've never seen your great for their skin except but i've never seen your products and if, partly because my children about much older and all of this is in the babyis much older and all of this is in the baby is so does that hold you back, do you think? yes and no. i think a lot of people, adults, with sensitive skin will automatically go to the baby aisle to look for their products but are retailers have now understood that dual listing is really important and we need to be both in the children's sandwiches inevitably relatively close to the adults and the baby aisle. the problem with eczema and psoriasis it doesn't get that most of the time until it's quite severe, but possibly later on in life. absolutely, it's about managing our skin and what we are trying to do is encourage people to think about their skin. it is the largest organ
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on your body, let's look after it and teach children from a very early age some life habits about maintaining their skin. and hopefully it prevents later psoriasis psoriasis. and that there's anything could say to pa rents there's anything could say to parents out there it is moisturise, moisturise, moisturise, it is the best thing you can do for your skin. if you can get them to stay still explanation market is getting the suncream on that drives me mad. argue for coming in, great to have you on the programme. one of the most iconic symbols of american business has to be the new york stock exchange. but you might have noticed a common trait among the dealers on the trading floor. they're all men! well, all but one. enter lauren simmons — she's the only full—time female broker, as well as the only african—american. joe miller has more. genetics graduate lawrence simmonds was always an unlikely candidate for a career within the beating heart of the us economy as clients often like
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to remind her. a woman, you are 23, how did you get this job? lauren moved to the big apple from georgia and fangs to a chance introduction was soon working on wall street in an almost entirely male environment. i fell an almost entirely male environment. ifell in an almost entirely male environment. i fell in love with the numbers and the fast movement and the men in the trading jackets and everything was moving so fast and i am loving it. the new york stock exchange is one of the last remaining trading floors to still use human rockers but even as their numbers dwindle one thing remains true, this is very much a boys club. this disparity goes back to the way things were done before the computers arrived. trading in a trading crowd was a very physical thing, you and i would look at each other and try and figure out how big an order did we have? last year richard hired lauren, she remains the only full—time female broker on the only full—time female broker on
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the floor and only the second african american woman ever to sign her name alongside jd african american woman ever to sign her name alongsidejd rockefeller. in the new york financial sector which is long battled accusations of sexism, there is more to follow in her wake. let's hope she proves to bea her wake. let's hope she proves to be a trailblazer. james bevan is back to talk us through some of the other stories. tell us about this interesting idea from the resolution foundation to help young people over there is a real bus crash in an debate about the the fact that bank of mum and dad is funding young people to try and do anything. what one observes is that the baby boomer generation, people born between 1946 and 64 have had it great. rising asset values, low money rates, plenty of opportunity to build equity in housing, most people still have a job, the younger generation discovering they are not getting an equal slice of the cake, the
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government here and in many countries saying what will we do? we understand there's an important element of social cohesion and we need to shift the needle in terms of who gets what and this suggestion, £10,000 may be given to people aged 25 either to invest in a pension or a house or start a business is a discussion, really about how we levelled the playing field and ensure everybody it's a fair crack above. this idea, taxing pension is above. this idea, taxing pension is a little more and shifting back to the younger generation, we've had some reaction on social media, some people say we have worked hard at whole lives and we will have to give some of that away... when we look at the mouths of what will happen it's about a reform to inheritance tax, which in the uk involves 40% at the point of death or final gift. this is now talking about a tax along the way of 20% on all gifts rising to 30% above a certain level and that
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suggests there will be money left over at that will fund this £10,000 transfer. surely the £10,000 will have to be regulated, what people do with it because you can be guaranteed they are going to be spending it on housing and sensible... it's only going to be handed overfor sensible... it's only going to be handed over for pension, sensible... it's only going to be handed overfor pension, for housing and for the starting of a handed overfor pension, for housing and for the st you. | of a handed overfor pension, for housing and for the st you. so a handed overfor pension, for housing and for the st you. so great to have james, thank you. so great to have you with us. let sure some of your thoughts that you have sent in, john says i don't understand why we were tax pensioners when we have people being paid huge wages. not everyone, but some are. let's tax the most honourable. roger says i'm a pensioner, i have worked all my life, still paying tax. thank you so much for all your views. that's it from us, more business news throughout the day on bbc live web pages and the business reports. goodbye. and iii; 9 g:—’
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iti‘ie‘ii and iii; 9 g:—’ that was. and iii; 9 g:—’ ‘for down—towards the south—east itwillrrr—r—rr— — ~ pretty dewn—tewards the seuth—east itwillrrr—r—rr— — ~ pretty today, dewn—tewards the seuth—east itwillrrr—r—rr— — ~ pretty - today, that will be pretty warm today, that will change eventually, cooler atlantic airas you can change eventually, cooler atlantic air as you can see filtering in across the uk, losing the orange, replaced by blue. this morning some rain moving into northern ireland, pushing into scotland, some rain into north—west england and north wales, a bit more cloud the further west you are. in the east and south—east of england, the sunshine, one or two showers later, temperature is 26—28d, temperatures lower than yesterday towards the north and west, 15—20d. afternoon sunshine in northern ireland after the rain clears, as we go through
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tonight the rain clearing from the east, then going into wednesday this next area of low pressure moving in from the west. meaning for many of us from the west. meaning for many of us it should be a fairly bright start but bad cloud from the west rolling in, with some heavy rain for a time in northern ireland, scotland, western fringes of england and wales. down towards the south—east dry and bright, fresh, temperatures between 19—20d, further north and west, temperatures in mid—teens. that weather front clearing, wednesday into thursday we are clearing, wednesday into thursday we a re left clearing, wednesday into thursday we are left with a ridge into thursday, things should be dry for many of us on thursday, with some sunny spells, some showers kicking off across northern england, especially for scotland, they could be happy. for many on thursday a dry and bright day. temperatures 13—17d. about or just below the average for the time of year. we have lost the hot
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weather, much fresher conditions for all of us. good morning. hello, it's tuesday, it's nine o'clock, i'm victoria derbyshire, welcome to the programme we can exclusively reveal that the fastest growing group of people being diagnosed with adhd are adults, even though it's a condition associated with children. i don't get fired, ijust leave. i get to the point where i can't cope any more. either i'm too bored or i'm too frustrated or i genuinely believe i'm doing such a terrible job that i need to put my employer out of their misery. at 9:15, we'll be hearing from people who have been living with the condition for years before getting a diagnosis. if you are an adult recently diagnosed with adhd, do get in touch. after a wave of violence over the bank holiday weekend, with shootings in london, one fatal, we'll be asking what is going on,
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